Oil Immersed Shunt Reactor Market Size - By Phase (Single Phase, Three Phase), By Product (Fixed Shunt Reactor, Variable Shunt Reactor), By End Use (Electric Utility, Renewable Energy) & Forecast 2023 - 2032

Oil Immersed Shunt Reactor Market Size - By Phase (Single Phase, Three Phase), By Product (Fixed Shunt Reactor, Variable Shunt Reactor), By End Use (Electric Utility, Renewable Energy) & Forecast 2023 - 2032

Global Oil Immersed Shunt Reactor Market will witness 6.1% CAGR between 2023 and 2032. The increasing electricity demand, driven by industrialization and urbanization, has spurred investments in power infrastructure, necessitating reactive power compensation devices like shunt reactors. For instance, according to an International Energy Agency report from July 2021, global electricity demand was expected to increase by approximately 5% in 2021, with nearly half of this surge met by fossil fuels, particularly coal. Following a 1% decline in 2020 due to the COVID-19 pandemic's impacts, a surge in demand in 2021 and 2022, driven by global economic recovery, is anticipated. The report highlighted a positive trajectory for renewable electricity generation, with an estimated 8% growth in 2021 and over 6% in 2022.

Additionally, the growing emphasis on renewable energy integration and grid stability further boosts the demand for these reactors. Technological advancements, such as enhanced insulation materials and design innovations, contribute to the market's growth. Moreover, the expansion of transmission and distribution networks globally, coupled with the need for efficient voltage regulation, positions oil-immersed shunt reactor market growth as a crucial component in ensuring a reliable and stable power supply.

The overall Oil Immersed Shunt Reactor Market is classified based on product, end-use, and region.

Variable segment will undergo significant development from 2023 to 2032. As industries increasingly adopt variable products, the need for reactive power compensation grows, driving the demand for shunt reactors. These essential components contribute to stable and efficient power transmission and distribution, making them integral to meeting the demand for variable products across diverse industrial applications. Therefore, the heightened demand from the variable product sector justifies its contribution to the oil immersed shunt reactor market share.

Renewable energy segment will register a noteworthy CAGR from 2023 to 2032. As the world transitions towards sustainable energy sources, the integration of renewable energy into power grids necessitates efficient reactive power compensation. Shunt reactors play a crucial role in ensuring grid stability, making them essential components for the expanding renewable energy sector, including wind and solar power installations. Therefore, the increased demand for renewable energy applications supports its adoption in the oil immersed shunt reactor market development.

Europe oil immersed shunt reactor market will showcase an appreciable CAGR from 2023 to 2032. As the continent emphasizes grid modernization and renewable energy integration, there is a growing need for reactive power compensation devices. Oil-immersed shunt reactors play a vital role in enhancing grid stability and ensuring efficient power transmission, contributing substantially to the evolving energy landscape in Europe, thus driving industry growth.